Are you looking for Alternative Investments for your portfolio, but don’t know how to start?
Innovative Advisory Group follows a sophisticated evaluation program in qualifying alternative investments that we feel comfortable recommending to our clients. Our risk management team will provide you with a fundamental analysis of some potential investments as well as assisting you with the proper structuring and how to avoid common mistakes when working with non-traditional assets in a Self Directed IRA. Our process consists of:
Investment Identification
Once you become a client of Innovative Advisory Group, we will take you through our financial planning and portfolio management process. Through this process we will determine a suitable portfolio for you.
After our initial discussion we will move into the portfolio construction phase of our process. In this stage of the process we start by identifying suitable asset classes and investment types for you. These can include both traditional and alternative investments. Some examples of alternative investments which we might consider are: real estate, tax liens, private mortgages, hard money lending or factoring, buy-leasebacks, medical equipment leasing, structured settlements, oil and gas leases or LPs, private equity, venture capital or angel investments, fishing rights, website urls, intellectual property, dressage horses, timberland, farmland, precious metals (physical gold, silver, and platinum coins or bullion), and franchises or private businesses . While we would prefer that clients invest in areas that they are familiar with, we recognize that not all clients have a background in areas suitable for investment.
Investment Due Diligence and Evaluation
We review every investment with the same lens, whether we are identifying the investment for you or you are bringing it to us for analysis. This due diligence process has a strong focus on risk management. We look for alternative investment opportunities that have a winning combination of people, performance potential, and managed risk. Once an investment meets our initial criteria we move forward with a more detailed and thorough evaluation, including a review of prior financials, pro formas, extensive background checks on the principals, a review of offering materials, regulatory filings, and other related materials.
Investment Suitability
Once the evaluation is complete and the investment meets our strict standards, we will then assess whether the investment fits with your portfolio and investment criteria. Pairing your existing investments, risk tolerance, and expectations with the proposed investment is an important part of the process to ensure that the investment is suitable for you and your portfolio.
Implementation of the Investment Strategy
When the proposed investment has been through our rigorous due diligence process and suitability screening, the next step is preparing to fund the investment and completing the transaction. The preparation part of the process typically involves other institutions, professionals or specialists such as attorneys, accountants, real estate or insurance agents, depositories, and custodians. We are familiar with many of these specialists and this helps to ensure a smooth implementation process. We work with these people to ensure that the investment is structured properly and all documentation is complete and accurate. If the investment is to be held in a retirement account, we document procedures for our clients to follow in order to ensure future IRS compliance.
Investment Monitoring
Our process does not stop with completing the transaction. We continuously monitor all your investments. This monitoring process includes ongoing due diligence on the investment such as, frequent communication with investment managers or principals, analysis of performance, assessing changes in management strategy, analysis and management of ongoing operational risks, and alternative investment strategies. In addition to the due diligence, we also continually assess the investment’s suitability for your portfolio. If any issues arise during this ongoing monitoring process, appropriate strategies and corrective actions are initiated by the Investment Committee.
If you want to learn more about how Innovative Advisory Group Wealth Management can help you add alternative investments to your portfolio, contact us to learn more.
